LUBBOCK, TX (KCBD) - Marc McDougal is leading a group of local investors who expect to buy Reagor-Dykes Auto Group assets, according to sources. The bankruptcy judge and Ford Motor Credit will need to approve the buy, which did not happen today during a 2 p.m. hearing.
The judge approved a competitive bid process in September. McDougal and local investors were approached by Bart Reagor for an investment solution that would benefit all of the stakeholders, employees, downtown Lubbock, the creditors and even the customers.
Attorneys for Reagor-Dykes Auto Group started the hearing with a “global plan” that they said would be in the best interest of the stakeholders and for Lubbock. They said today was “the start of a solution.”
Bart Reagor sought out friends for assistance, and the attorney says those parties were found. Reagor’s attorneys said he has offered up his position and will step aside and will offer assistance to be able to bring in this new group. He said “a consensual path is our goal.”
Today RDAG attorneys did not seek approval from the judge, but they offered up the chapter 11 plan they believe would be the solution.
The solution involves Marc McDougal, Finn Ewing and Rick Dykes as chapter 11 sponsors, and roughly $140 million. To get the ball rolling, they’re offering to pay $1.5 million for operating costs to share the burden of the cash collateral until the plan is approved and closed.
Part of this plan will allow for employees to keep their jobs, as well as former and new employees to be hired. They believe this solution is best for Lubbock.
The sale to the “McDougal, Dykes, Ewing group” has not been finalized.
Before the hearing, Marc McDougal released the following statement:
"The parties involved in the Reagor-Dykes bankruptcy asked the McDougal Companies to consider assisting in negotiations regarding real estate holdings and capital needs.
"Because it is important to local lenders, to Downtown Lubbock redevelopment, and to hundreds of local and regional jobs, we agreed to discuss a role in helping secure viability of these properties and dealerships.
“Because of the sensitive nature of these negotiations, we will have no further statements until an appropriate time.”
Ewing Automotive Group, a dealership group consisting of Mercedes-Benz of Plano, Ewing Buick GMC and Ewing Subaru of Plano. Fin Ewing, III is the current President and Dealer/Operator of Ewing Automotive Group. The Ewing Automotive Group began in 1940 when Fin’s grandfather, Bruton Orand, moved from Waco to Dallas to take over the management of Morris Buick.
Federal court documents filed on July 31, 2018, show Ford Motor Credit Company is suing Reagor-Dykes dealerships, Bart Reagor and Rick Dykes. Ford says the dealerships have an outstanding balance of more than $116 million, and currently more than $41 million is due now.
Ford Motor Credit claims the dealerships have sold Ford Credit vehicles without sending required payments to Ford Credit, have repeatedly submitted false or inaccurate information to Ford Credit and its representatives, are otherwise in default under their financing and security agreements with Ford Credit, have failed to cure their defaults in spite of the opportunity to do so, and have not voluntarily surrendered collateral (vehicles) in their possession that is subject for Ford Credit’s security interests.
After the complaint from Ford, on August 1, 2018, Reagor-Dykes Auto Group filed Chapter 11 bankruptcy for Reagor-Dykes Motors, Reagor-Dykes Imports, Reagor-Dykes Amarillo, Reagor-Dykes Auto Company, Reagor-Dykes Plainview, and Reagor-Dykes Floydada.
Delbert McDougal began building his real estate empire in the 1980’s by buying bankrupt properties from the Resolution Trust Corporation.
His son, Marc McDougal, having negotiated the sale of the McDougal Properties apartment holdings in the least year, is taking a page from the family playbook by buying the former Reagor-Dykes Auto Group business assets out of bankruptcy.
From his bio on the McDougal Properties website:
Marc McDougal spent time in every part of the company and has managed the realty and construction divisions since their inception. Under his leadership, McDougal Realtors has listed or sold more than $5 billion in real estate. Marc is a past President of the Lubbock Apartment Association and has served on the boards of the West Texas Home Builders Association and Lubbock Board of Realtors. He has been very involved in public service, serving on numerous boards and was Mayor of Lubbock from 2002 – 2006.